Gartner Group: The Cost Of Ecommerce

[Steve Cockwell <stevec@sierra.lazarus.ca>]

******    message to minivend-users from Steve Cockwell <stevec@sierra.lazarus.ca>     ******

I thought this may be of interest to the folks on the list:

(Aside:  If anyone here is a UPS-style lookup guru I'd love to hear from
you (I'm setting up CanadaPost lookups for shipping within Canada...))

> Building an enterprise-class Ecommerce site is anything but "cheap,"
> according to a May 27 Gartner Group report titled "Survey Results: The Real
> Cost of E-Commerce Sites"
> (<http://gartner11.gartnerweb.com/public/static/aboutgg/pressrel/052799site_
> costs.html>). It pegs the average cost of developing and implementing a
> large scale Ecommerce site at a cool million dollars. 79% goes for labor,
> 11% for hardware, and 10% for software.
> 
> On average, it took five months to get a site going, although some required
> a year of development, and none came in within their expected budget. To rub
> salt in the wound, Gartner's Roy Satterhwaite points out that a typical
> Ecommerce Web site will be outdated in just a few months if its back-end
> systems, and the face it presents to its customers, aren't constantly
> updated.
> 
> Nevertheless, even given that blood, sweat, and tears, Satterhwaite
> acknowledges,
>         "Building an e-commerce site is a definite requirement for any
> midsize to large enterprise that intends to remain competitive during the
> next two to five years."
> Gartner identifies three categories of enterprise-level Web sites, and what
> they will cost:
> *       "Get on the Map" sites, seen as "adequate" but "functionally behind"
> the competition, will cost from $300,000 to $1 million;
> 
> *       "Run with the Pack" sites, on a par with the enterprise competition,
> will cost between $1 million and $5 million; and
> 
> *       "Market Differentiator" sites, which "raise the industry competitive
> bar and change the nature of online competition," will cost between $5
> million and $20 million.
> Yet even with these costs, today the Web is one game that you just HAVE to
> play! And you might want to get started now, rather than later -- Gartner
> expects the cost of implementing such a Web site to rise 25% per year, over
> at least the new two years...

Cheers!
.src
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